The Great Depression Flashcards
What percent of the population had no income?
28%
What is the Great Depression?
It was a time in the US when there was little money and no growth.
What percent of the people on government relief were children?
40%
How many children in 1932 could not attend public schools because of the lacked funds to open?
1/3 million
How many people went without homes or work?
2 million
When people were hungry and homeless who and what did they turn to?
Soup kitchens and “Hoovervilles”
What are “Hoovervilles”?
A town built by homeless people during the Great Depression named after the US president Herbert Hoover.
What were the 3 reason for the Great Depression?
1) The Stock Market
2) Business Practices
3) Bank Failures
During the 1920s people wanted to make money quick in the stock market using what two things?
1) Overspeculation
2) Buying on Margin
What is overspeculation?
To buy stock that is high risk so you make a large profit when you sell it (get rich quick scheme)
What is margin?
buying shares of stock with borrowed money that is to be repaid when the shares are sold.
What happened on October 24, 1929?
Thousands of investors wanted to sell their stock but not buy any
What happened on October 24, 1929 or “Black Tuesday”?
The stock market crashed and nearly everyone lost money.
What was happening with business practices?
Industries were producing more goods than they could sell and high tariffs discouraged international trade.
What were the bank failures?
No government regulations , 25%of banks failed, and federal reserve failed to prevent banks from collapsing.
How many workers were without jobs?
1/4
Farmers incomes fell to what level?
low
What president came up with the brilliant plan to save everyone?
Franklin Roosevelt
What were the 3Rs of Roosevelt’s program and what did each mean?
1) Relief: Give food and shelter
2) Recovery: Creating jobs for a long term economic recovery.
3) Reform: Preventing future economic disasters through refrom.
What is the 1933 Reconstruction Finance Corporation?
Federal loans to business and banks
What is the 1933 National Industrial Recovery Act?
Allowed business to set price, wage, and production values.
What is the 1933 Agricultural Adjustment Act?
Paid farmers to plant less and raise crop prices.
What is the 1933 Civilian Conservation Corporation?
Employed young men in reforestation and construction.
What is the 1933 Public Works Administration?
Construction projects provided work relief to poor.
